Defining the research problem is crucial for setting the direction and focus of a market research study. This step ensures that the research is targeted and relevant. A critical aspect involves framing the issue within a broader context by conducting a thorough literature review. For instance, to understand why a new beverage product is underperforming, researchers review existing studies on consumer preferences and market trends to identify gaps.

After identifying the problem, specifying the scope becomes crucial. This step involves determining the variables and target demographics to be studied. Researchers might focus on factors affecting the product's performance, such as marketing strategies, packaging appeal, and competitor analysis. They also decide whether to study a specific age group or a broader audience.

Formulating precise research objectives is crucial as it guides the methodology and analysis. Objectives such as assessing advertising effectiveness, identifying factors influencing consumer decisions, or evaluating market positioning plays a significant role in the research process. By defining the problem systematically, researchers can design a focused study with appropriate methods, leading to actionable insights and solutions.